HCA Previews 2013 Third Quarter Results

HCA Previews 2013 Third Quarter Results

NASHVILLE, Tenn. (Business Wire) -- HCA Holdings, Inc. (NYSE: HCA) today announced preliminary financial and
operating results for the third quarter ended September 30, 2013. The
financial results are subject to finalization of the Company's quarterly
financial and accounting procedures.

HCA anticipates revenues for the third quarter of 2013 will be
approximately $8.456 billion compared to $8.062 billion in the third
quarter of 2012. Income before income taxes for the third quarter is
expected to approximate $701 million compared to $677 million in the
prior year period. Net income per diluted share for the third quarter of
2013 is expected to be approximately $0.79 per diluted share compared to
$0.78 for the third quarter of 2012. Adjusted EBITDA for the third
quarter is expected to be approximately $1.603 billion compared to
$1.533 billion in the previous year's third quarter. Adjusted EBITDA is
a non-GAAP financial measure. A table reconciling income before income
taxes to Adjusted EBITDA is included in this release.

Same facility admissions for the third quarter of 2013 increased 0.7
percent while same facility equivalent admissions increased 1.1 percent.

Same facility revenue per equivalent admission is expected to increase
approximately 3.4 percent in the third quarter of 2013 compared to the
prior year's third quarter as case mix, or acuity, increased 2.0 percent
in the current quarter compared to the prior year.

The Company now anticipates its Adjusted EBITDA for 2013 to be near the
upper-end of its previously issued guidance range of $6.25 to $6.50
billion.

HCA anticipates reporting its complete financial results for the third
quarter of 2013 on, or about, November 5, 2013.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the federal securities laws, which involve risks and
uncertainties. Forward-looking statements include statements that do not
relate solely to historical facts and are subject to finalization of the
Company's third quarter financial and accounting procedures.
Forward-looking statements can be identified by the use of words like
“may,” “believe,” “will,” “expect,” “project,” “estimate,” “anticipate,”
“plan,” “initiative” or “continue.” These forward-looking statements are
based on our current plans and expectations and are subject to a number
of known and unknown uncertainties and risks, many of which are beyond
our control, which could significantly affect current plans and
expectations and our future financial position and results of
operations. These factors include, but are not limited to, (1) the
impact of our substantial indebtedness and the ability to refinance such
indebtedness on acceptable terms, (2) the effects related to the
implementation of the Patient Protection and Affordable Care Act, as
amended by the Health Care and Education Reconciliation Act
(collectively, the “Health Reform Law”), the possible enactment of
additional federal or state health care reforms and possible changes to
the Health Reform Law and other federal, state or local laws or
regulations affecting the health care industry, (3) the effects related
to the implementation of the Budget Control Act of 2011 (the “BCA”) and
the potential for future deficit reduction legislation that may alter
BCA-mandated spending reductions, which include cuts to Medicare
payments, or create additional spending reductions, (4) increases in the
amount and risk of collectability of uninsured accounts and deductibles
and copayment amounts for insured accounts, (5) the ability to achieve
operating and financial targets, and attain expected levels of patient
volumes and control the costs of providing services, (6) possible
changes in the Medicare, Medicaid and other state programs, including
Medicaid upper payment limit programs or waiver programs, that may
impact reimbursements to health care providers and insurers, (7) the
highly competitive nature of the health care business, (8) changes in
service mix, revenue mix and surgical volumes, including potential
declines in the population covered under managed care agreements, the
ability to enter into and renew managed care provider agreements on
acceptable terms and the impact of consumer driven health plans and
physician utilization trends and practices, (9) the efforts of insurers,
health care providers and others to contain health care costs, (10) the
outcome of our continuing efforts to monitor, maintain and comply with
appropriate laws, regulations, policies and procedures, (11) increases
in wages and the ability to attract and retain qualified management and
personnel, including affiliated physicians, nurses and medical and
technical support personnel, (12) the availability and terms of capital
to fund the expansion of our business and improvements to our existing
facilities, (13) changes in accounting practices, (14) changes in
general economic conditions nationally and regionally in our markets,
(15) future divestitures which may result in charges and possible
impairments of long-lived assets, (16) changes in business strategy or
development plans, (17) delays in receiving payments for services
provided, (18) the outcome of pending and any future tax audits, appeals
and litigation associated with our tax positions, (19) potential adverse
impact of known and unknown government investigations, litigation and
other claims that may be made against us, (20) our ongoing ability to
demonstrate meaningful use of certified electronic health record
technology and recognize income for the related Medicare or Medicaid
incentive payments, and (21) other risk factors described in our annual
report on Form 10-K for the year ended December 31, 2012 and our other
filings with the Securities and Exchange Commission. Many of the factors
that will determine our future results are beyond our ability to control
or predict. In light of the significant uncertainties inherent in the
forward-looking statements contained herein, readers should not place
undue reliance on forward-looking statements, which reflect management's
views only as of the date hereof. We undertake no obligation to revise
or update any forward-looking statements, or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise.

All references to “Company” and “HCA” as used throughout this release
refer to HCA Holdings, Inc. and its affiliates.

HCA Holdings, Inc.

Supplemental Operating Results Summary

(Dollars in millions)

Third Quarter

2013

2012

(Preliminary

Estimates)

Income before income taxes

$

701

$

677

Depreciation and amortization

443

417

Interest expense

458

446

Losses (gains) on sales of facilities

1

(7

)

Adjusted EBITDA (a)

$

1,603

$

1,533

(a)

Adjusted EBITDA should not be considered a measure of financial
performance under generally accepted accounting principles
(“GAAP”). We believe that Adjusted EBITDA is an important measure
that supplements discussions and analysis of our results of
operations. We believe that it is useful to investors to provide
disclosures of our results of operations on the same basis as that
used by management. Management relies upon Adjusted EBITDA as a
primary measure to review and assess operating performance of its
hospital facilities and their management teams.

Management and investors review both the overall performance (GAAP
income before income taxes) and operating performance (Adjusted
EBITDA) of our health care facilities. Adjusted EBITDA and the
Adjusted EBITDA margin (Adjusted EBITDA divided by revenues) are
utilized by management and investors to compare our current
operating results with the corresponding periods of the previous
year and to compare our operating results with other companies in
the health care industry. It is reasonable to expect that losses
(gains) on sales of facilities will occur in future periods, but
the amounts recognized can vary significantly from quarter to
quarter, do not directly relate to the ongoing operations of our
health care facilities and complicate quarterly comparisons of our
results of operations and operations comparisons with other health
care companies.

Adjusted EBITDA is not a measure of financial performance under
GAAP, and should not be considered as an alternative to income
before income taxes as a measure of operating performance or cash
flows from operating, investing and financing activities as a
measure of liquidity. Because Adjusted EBITDA is not a
measurement determined in accordance with GAAP and is susceptible
to varying calculations, Adjusted EBITDA, as presented, may not be
comparable to other similarly titled measures presented by other
companies.

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